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Problem 7-16 Bond valuation You are considering a 25-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. If you

Problem 7-16 Bond valuation

You are considering a 25-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 9.17%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

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